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How Is a C-Corp is Taxed?

Incorporating your business as a C-Corp allows more flexibility than you’d have as an S-Corp. For starters, you can choose to have several classes of shareholders and determine each class’s voting rights.WIth that said, you’ll also have additional tax implications to consider.

C-Corps pay taxes at the corporate level first. After that, individual shareholders pay taxes on dividends paid by the corporation. This opens up certain shareholders to double-taxation.